Benefits

Many Employees Lack Understanding of the Total Cost of Health Care

Forty percent of Millennials, 40% of Generation X and 52% of Baby Boomers know how much their employers contribute to the cost of health insurance, a survey finds.

By Rebecca Moore editors@plansponsor.com | June 23, 2017

The full cost of health care includes employer contributions, employee contributions, and the cost of health care services, but do employees understand that?

According to Jellyvision’s 2017 ALEX Benefits Communication Survey, conducted by Harris Poll, only 59% of employees with health insurance correctly identify all three options as going into the cost of care.

Five percent of employees think the total cost of health care includes only their own contribution and the cost of health care services, while 5% think it includes their contribution only and 7% think it includes the cost of care only.

Eight percent recognize the employer’s part in paying for the cost of care by identifying “cost of care plus employer contribution” as the elements of total health care costs. Five percent each selected “employee contribution plus employer contribution” and “employer contribution.”

Six percent of employees reported they were not sure what goes into the total cost of health care.

In addition, the survey found 55% of Millennials, 72% of Generation X and 78% of Baby Boomers know how much they contribute to the cost of health insurance. Forty percent of Millennials, 40% of Generation X and 52% of Baby Boomers know how much their employers contribute to the cost of health insurance.

The nationwide online survey was conducted from February 24 to March 17, 2017, among 2,043 U.S. adults who are employed full-time, are eligible for company-provided benefits, and do not have health insurance through Medicare, Medicaid, or the Veterans Administration.

SPONSORED MESSAGES